Houston 'incredibly optimistic' about its economy, study finds

By L.M. Sixel |
October 3, 2012
| Updated: October 3, 2012 1:30pm

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The 2012 Chase-Greater Houston Partnership Pulse of the Consumer Survey found Houstonians are more optimistic than Americans in general about the economy and their personal finances. A few highlights:

Believe their local economy has bottomed out and is stable or getting better:

Houston 71%

National 67%

Believe their personal finances have bottomed out and are stable or getting better:

Houston 70%

National 65%

Expect to buy a new car in the next five years:

Houston 51%

National 38%

Expect to take a dream vacation in the next five years:

Houston 30%

National 24%

Expect to buy a home or condo in the next five years:

Houston 26%

National 20%

= Houston = National = 100%

Note: Margin of error is +/- 3 percentage points. Margin of error for Houston and other subgroups is +/- 4.7 percentage points and higher.

Houstonians are more bullish on their local economy than consumers in other U.S. cities, a survey sponsored by Chase and the Greater Houston Partnership shows. They're also more likely to buy a car, buy a house and go on a dream vacation during the next five years.

The optimism stems in part from the strong energy industry, Houston's get-up-and-go spirit and a healthy record of job creation while the rest of the nation struggles, concluded a panel discussing the survey results at a luncheon Tuesday.

But Houston still has work to do and must make sure residents have the skills and training to fill the job openings of today and of the future.

"Houston can continue to be a city that's thriving and producing," said Gina Luna, Houston region chairman at JPMorgan Chase. "We need to think about competition and investment in education and infrastructure."

Seventy-one percent of Houstonians believe the local economy has bottomed out and is either stable or on its way up, according to the online survey, which randomly questioned 1,019 adults nationwide this summer. The Houston portion was a separate online poll of 432 adults and had a margin of error of plus or minus 4.7 percentage points.

While the unemployment rate has dipped, more Houstonians report that they had more difficulty paying for groceries, said Klineberg, referring to his own separate annual survey of Houstonians.

The number of wealthy Houstonians is growing, he said, but so is the number living in poverty.

"We must have growth in the middle class," Klineberg said, adding that he is troubled by the increase in the number of Houstonians who report they're cutting back on basic purchases.

If the purchasing power of the middle class doesn't go up, it will be hard for the economy to be self-sustaining, he said.

And it's not enough for Houston to create a lot of jobs, Klineberg said. Quality is key and while Houston is creating many high-paying positions, it's also generating a lot of low-paying jobs that require little in the way of skill or training.

The way to improve the prospects of low-income workers is to invest in their skills, Klineberg said.

The upcoming November election offers a key turning point to provide the investments in education - from kindergarten to college - that are so sorely needed, he said.